The latest Moody's downgrade of Russia's sovereign debt rating is based purely on “factors of a political character,” Russia's Finance Minister said, claiming the agency’s exorbitantly negative forecasts are “unrealistic” and without parallel.

“Obviously, the
information about the state of the Russian economy, its fiscal
and financial policies provided to the agency in a comprehensive
volume was ignored. I think when deciding on a downgrade, the
agency was guided primarily by political factors,” Russia's
Finance Minister Anton Siluanov said.

After Moody's downgrade of Russia's sovereign rating to Ba1
from Baa3 with a negative outlook, the minister remains certain
that the move will not have any additional impact on the
country’s capital market, as Russia’s local currency rating from
S&P and Fitch remains at the investment grade level of BBB-.

Siluanov noted that the Finance Ministry, will continue an
“open dialogue with the international rating agencies to
raise Russia’s credit rating in the medium term,” but noted
that Moody's assessment “is based on an extremely pessimistic
outlook, which has no analogues today.”

In cutting its rating on Russia, Moody’s cited the decline in oil prices and a
significant weakening of the Russian ruble as well as the ongoing
conflict in neighboring Ukraine as reasons behind the downgrade.